URU Metals Limited Regulatory News (URU)

14 May 2008 07:00

For immediate release

14 May 2008

Niger Uranium Limited

("Niger Uranium" or "the Company")

Exploration Update

20 % increased uranium grades at In Gall target - resource estimation to be completed in June 2008 and step-out fence drilling lines planned to extend the resource.

Highlights

Resource estimation underway for a 5,000 by 900 metre area containing a continuous near-surface layer with a mean borehole interval grade of 146 ppm eU3O8 over 1.2 metres. 

The above grade represents an increase of 20 per cent. over previously reported grades as a result of final calibration of the radiometric probe.

An intersection of 4.6 metres at 172 ppm eU3O8 illustrates the potential for thicker development of the mineralised layer.

Only 20 per cent of the historically delineated mineralised area has been tested to date. Extension drilling commences in June which is expected to significantly extend the resource area.

Ian Stalker, Deputy Chairman, said:

"The 20 per cent. improvement of the in-situ grade demonstrates the value of our Niger licenses. Similar high tonnage open-pittable surface deposit projects within Africa typically have cut-off grades of the order of 40 to 80ppm U3O8, which further illustrates the potential of our licenses. We look forward to reporting an initial code-compliant estimate and subsequent resource statements over the coming months as our work in Niger continues" 

A resource estimation is being carried out by MSA Geoservices for a portion of target 17 on the Company's In Gall License in Niger. The estimate is expected to be completed early in June 2008. Based upon a finalised calibration factor for the gamma logging tool used to probe boreholes, the average grade of the uranium mineralised layer is 20 per cent. higher than previously reported. 

For all 32 holes drilled on a 400 x 250 metre grid within the 'resource area', the mineralised layer averages 1.2 metres thick and has a mean grade of 146 ppm eU3O8. This area covers approximately 5,000 by 900 metres and is continuously mineralised. A borehole outside of the 'resource area' which intersected the same layer six kilometers along strike returned 225 ppm U3O8 illustrating the potential for thicker development of the mineralization.

Drilling was completed under the direction of MSA Geoservices. All boreholes were vertical and drilled by the tri-cone method and probed with a Robertson gamma tool which was calibrated by Terratec Geoservices, at the Medusa facility in The Netherlands. Final calibration resulted in a conversion factor of 0.157 ppm eU3O8 per radiometric count. Additional validation of the gamma tool results is provided by the results of XRF analyses on samples from 15 boreholes in within the 'resource area'. All boreholes were drilled by the tri-cone method.

Uranium mineralization (visual observation of carnotite) occurs at the top of a flat-lying to gently dipping mudstone unit, below porous sandstones of the Tegama Formation. The continuity and gentle dip of the uranium-mineralised layer, and the fact that it crops out at surface support the potential for large-scale open pit mining or insitu leaching.

The mineralization is open; historical maps indicate that it extends up to 15 kilometres to the west; as little as 20 per cent. of this area has been drilled to date. Historical maps delineate a 'channel' and locate several wide-spaced historical boreholes marked as 'mineralised'. This information will be used to guide the location boreholes along 'step-out' fence lines. Drilling will commence in June and is expected to lead to expansion of the resource.

Appendix 1 - Borehole intersections by radiometric probing

Appendix 2 - XRF verification analyses

Appendix 3 - Borehole collar positions

Qualified Person

The information contained in this announcement has been reviewed by Keith Kenyon (MSc. AUS IMM), Geochemical Consultant to Niger Uranium. He is the Qualified Person overseeing the geochemical exploration on the In Gall-Irhazer licences. Mr. Kenyon has 36 years experience in gold and uranium exploration and geochemistry and he is undertaking to act as a Qualified Person for the purposes of this announcement.

The chemical analyses were undertaken by SGS Minerals, Southern Africa; 58 Melvill Street, Booysens, Johannesburg, 2091, Tel. +27 (0)11 680-3466. This is a properly equipped, fully accredited laboratory undertaking analyses and assays for the mining industry.

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